Fed is independent, U.S. official tells sceptical Berlin audience
BERLIN, June 12 (Reuters) - The Federal Reserve remains
independent from political interference, a senior U.S. Treasury
official told a sceptical Berlin audience on Wednesday, a day
after President Donald Trump renewed criticism of the bank's
The U.S. central bank, whose independence is viewed as key
to economic stability, has been under pressure from Trump to cut
interest rates amid his administration's shift towards
protectionism and broader signs of potential economic weakness.
"The Fed Interest rate way to(o) high, added to ridiculous
quantitative tightening. They don’t have a clue," Trump wrote in
a tweet on Tuesday.
Asked about Trump's comments during a panel discussion, U.S.
Deputy Secretary of Treasury Justin Muzinich said there was no
indication of tensions between the Fed and the White House.
"The president has his views, everyone on this panel has his
views...," Muzinich said. "But the important point to emphasize
is that, politically, the Fed's independence is not in
"That's good to hear," said Andreas Dombret, a former member
of the Executive Board of Germany's Bundesbank who had asked the
question, drawing loud laughter and applause from the audience.
Fed policymakers could decide to cut rates in coming months
given recent weak job and inflation data.
(Reporting by Michael Nienaber,; editing by John Stonestreet)
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